Exact Sciences: Building Momentum?

Exact Sciences (EXAS) soared 30% yesterday after releasing earnings that gave investors hope that better times were just around the corner. Today, Baird analysts Catherine Ramsey and Emily Stent argue that Exact's results "help build momentum." They explain why:

Exact topped expectations, with strong volumes and $0.09 upside. Management reiterated 2016 guidance, though pointed towards the lower end. We’re a bit more conservative on the 4Q ramp, given holiday order trends last year, but believe higher-than-expected average-selling price could help Exact near the revenue forecast without necessarily hitting 240,000+ completed tests. We’re encouraged by the reacceleration in 2Q and see momentum building in Exact’s favor, with potential final HEDIS inclusion this fall and broader commercial coverage over time...Maintain Outperform rating, new $18 price target (+$3).

Shares of Exact Sciences have gained 2.2% to $16.56 at 2:59 p.m. today.

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